DeepSeek Explained: What It Is and How It Works

Learn what DeepSeek is, how it works, and whether it's safe to use. Learn why this powerful Chinese AI model is gaining global attention in the open-source AI space.
Valeri Sabev
A full stack web developer, high-tech entrepreneur and cyber-security enthusiast.
AI Basics
Article Main Image

Imagine a world-class AI model so capable, so efficient, and so openly available that it shook the foundations of the tech world. That’s exactly what happened in early 2025, when a rising company from China, DeepSeek, released its groundbreaking open-source large language model (LLM). Practically overnight, it surged to the top of app stores, outperforming well-established players like OpenAI’s ChatGPT. But what makes DeepSeek so remarkable? How does it work, what can it do, and why has it captured the attention of developers, businesses, and AI researchers worldwide?

In this article, we’ll unpack everything you need to know about DeepSeek LLM—from its architecture and innovations to its real-world applications and how it stacks up against the giants of AI.

What is DeepSeek?

Founded in 2023 and based in Hangzhou, China, DeepSeek is a next-generation AI company with an ambitious vision: to democratize artificial intelligence. Under the leadership of entrepreneur Liang Wenfeng, the company has focused on building high-performing large language models that are not only state-of-the-art but also open-source—a rarity in a landscape dominated by proprietary models from tech giants like OpenAI, Google, and Anthropic.

While the company released its first model in late 2023, it was the unveiling of DeepSeek-R1 in January 2025 that propelled it into global prominence. R1, optimized for reasoning and complex task-solving, represents a strategic leap toward artificial general intelligence (AGI)—the holy grail of AI research, where models attain human-level cognitive capabilities.

{{blue-cta}}

What is a Large Language Model (LLM)?

For those less familiar with AI jargon, a large language model is essentially a sophisticated text generator. It’s trained on vast datasets—spanning books, articles, websites, and code—to recognize patterns in human language. When prompted with a question or instruction, an LLM predicts what text should come next, generating responses that can sound surprisingly fluent and insightful.

Famous examples include ChatGPT, Claude, and Gemini, which can compose essays, write code, translate languages, summarize reports, and even assist with customer support. These models do not "understand" language in the way humans do, but their ability to mimic human-like communication is transforming industries.

The Architecture Behind DeepSeek LLM

At its core, DeepSeek LLM is built on a transformer architecture, similar to that of GPT-4 and other leading models. But where DeepSeek truly differentiates itself is in scale, efficiency, and training philosophy.

The current open-source version boasts a whopping 67 billion parameters—a measure of the model’s complexity—and was trained from scratch on an enormous bilingual dataset of 2 trillion tokens in English and Chinese. This makes it one of the largest and most linguistically diverse LLMs available to the public.

Training Innovations

Training a model at this scale is typically a multi-million-dollar endeavor. DeepSeek, however, employed novel techniques to keep costs manageable while optimizing for performance. These included:

  • Reinforcement Learning with Human Feedback (RLHF) to improve reasoning.
  • Curriculum learning strategies to gradually increase task difficulty.
  • Highly optimized hardware utilization to accelerate training.

The result? A model that not only competes with the best but does so at a fraction of the traditional cost.

Key Features and Innovations

1. Mixture-of-Experts (MoE) Architecture

One of DeepSeek's most significant breakthroughs is its use of Mixture-of-Experts (MoE) design. While the full model contains 671 billion parameters, only around 37 billion are active during any given interaction. This means DeepSeek can provide the performance benefits of an ultra-large model without the corresponding computational burden.

This selective activation makes it faster and more cost-effective—an appealing prospect for businesses and developers with limited resources.

2. Extra-Long Context Window

DeepSeek LLM supports an extraordinary context length of up to 128,000 tokens—roughly equivalent to 100,000 words. This is far beyond the capabilities of most mainstream LLMs and allows the model to retain information from long conversations, documents, or even multiple files. For use cases like legal document analysis, financial reporting, or extended dialogue systems, this feature is game-changing.

3. Multilingual Mastery and Strong Reasoning

Thanks to its dual-language training corpus, DeepSeek excels in both English and Chinese, even outperforming GPT-3.5 in Chinese comprehension tasks. Its proficiency in logic and mathematics is equally impressive, scoring 84% on math word problems and 73.8% on code generation tasks—beating models like Meta’s LLaMA 2 in benchmarks for reasoning and software development.

4. Open Source and Cost-Efficiency

Perhaps the most disruptive aspect of DeepSeek is its open-access policy. The company has made both the 7B and 67B parameter models freely available for commercial use, enabling organizations to run, fine-tune, or integrate the models without licensing fees. Reports suggest that using DeepSeek via API could be up to 95% cheaper than equivalent output from GPT-4.

This not only reduces AI deployment costs but also fosters community-led innovation, experimentation, and transparency.

Real-World Applications

DeepSeek’s capabilities make it versatile across industries and domains. Here are just a few practical use cases:

Software Development and Code Generation

Developers can use DeepSeek to generate functions, refactor legacy code, or debug software. A variant called DeepSeek Coder was released specifically for programming tasks, making it a valuable tool for accelerating development cycles.

Conversational AI and Assistants

Like ChatGPT, DeepSeek can power chatbots, virtual assistants, and customer service agents. Its ability to retain long conversational history makes it ideal for multi-turn dialogue systems and complex interactions.

Business Intelligence and Analysis

Organizations can feed reports, logs, or meeting transcripts into DeepSeek to get concise summaries, insights, or action points. Its long context window means entire annual reports or policy documents can be processed in one go.

Education and E-Learning

As a virtual tutor, DeepSeek can explain complex topics, solve math problems step-by-step, or even generate quiz content. Its reasoning capabilities make it especially effective in breaking down difficult subjects into digestible chunks.

{{blue-cta}}

Is DeepSeek AI safe to use?

Yes, DeepSeek is generally considered safe to use, but—like any cutting-edge generative AI—it comes with important caveats. As a Chinese AI company, DeepSeek follows a unique set of data governance and regulatory practices, which may raise concerns for organizations dealing with sensitive information. However, its fully open-source models allow users to audit and self-host the system, offering enhanced control over privacy and compliance. With its latest release, DeepSeek-V3, the company has demonstrated strong AI capabilities, positioning itself as a serious high-flyer in the global AI industry. That said, users should be aware of potential limitations like data residency and political bias. For risk-sensitive applications, deploying DeepSeek on a local server (or within a secure cloud environment) is the best practice to ensure safety while harnessing the power of o1-level performance.

DeepSeek vs. The Big Players

GPT-4 (OpenAI, ChatGPT)

Strengths: High performance, multimodal capabilities (text + images), robust safety layers.

Limitations: Proprietary, paywalled, less customizable.

DeepSeek Advantage: Comparable performance in many tasks, fully open-source, drastically cheaper to deploy.

Google Gemini

Strengths: Multimodal, integrated into Google’s ecosystem, strong research backing.

Limitations: Closed model, limited access outside Google products.

DeepSeek Advantage: Open, flexible, community-driven, and not tied to a specific platform.

Anthropic Claude 2

Strengths: Strong ethical safeguards, long context window (100K tokens), excellent reasoning.

Limitations: Proprietary, only accessible through API.

DeepSeek Advantage: Similar context capacity, higher customizability, zero licensing restrictions.

Considerations and Limitations

Despite its strengths, DeepSeek is not without challenges:

Hallucinations

Like all LLMs, DeepSeek can sometimes generate confident but incorrect answers—a phenomenon known as hallucination. Users should validate outputs, especially in critical domains like healthcare or finance.

Political Sensitivity and Bias

Some users have noted that DeepSeek may avoid politically sensitive topics, particularly those related to China. This could be a result of dataset filtering or fine-tuning constraints. Additionally, it inherits the biases present in the data it was trained on—something common to all LLMs.

Data Privacy Concerns

When using the online version, inputs may be logged and stored on servers located in China, which could be problematic for users dealing with sensitive data. However, this issue can be circumvented by running the model locally or in a secure cloud environment, thanks to its open-source nature.

Infrastructure Requirements

Deploying the full 67B model requires significant computing power—typically multiple high-end GPUs. While the 7B version can run on a powerful desktop, enterprise-scale deployments of the larger models demand serious hardware or access to cloud GPU clusters.

What’s Next for DeepSeek?

The company isn’t stopping at language models. In 2025, it introduced a vision model called Janus Pro, signaling a move toward multimodal AI—where models can handle not just text, but also images, audio, and possibly video in the future. There's also speculation about an upcoming DeepSeek-R2, promising further gains in efficiency and capability.

More importantly, DeepSeek’s rise is pressuring the broader AI ecosystem to embrace transparency and cost-efficiency. As more developers, startups, and even governments explore open-source AI, DeepSeek stands at the forefront of a democratizing movement—challenging the notion that only Big Tech can lead in cutting-edge AI.

Final Thoughts

DeepSeek LLM isn’t just another AI model—it’s a statement. A statement that excellence in AI can come from open communities, not just corporate labs. A statement that innovation doesn’t need a billion-dollar budget. And a promise that the future of AI might be more inclusive, collaborative, and accessible than ever before.

Whether you’re a developer, business leader, educator, or simply an AI enthusiast, DeepSeek offers a compelling opportunity to engage with cutting-edge technology without barriers. As AI continues to reshape our world, DeepSeek is proving that some of the most exciting breakthroughs may come from places we least expect.

Build powerful AI chatbots effortlessly—try Voiceflow for free today.
Get started, it’s free
Build powerful AI chatbots effortlessly—try Voiceflow for free today.
Get started, it’s free
This is some text inside of a div block.
This is some text inside of a div block.
This is some text inside of a div block.
This is some text inside of a div block.
This is some text inside of a div block.
This is some text inside of a div block.
This is some text inside of a div block.
This is some text inside of a div block.

Start building AI Agents

Want to explore how Voiceflow can be a valuable resource for you? Let's talk.

ghraphic